surprises here. these are some of the names we've been hearing over the last couple weeks. one is interesting. chuck hagel, a former senator. he's on the right on your screen. he's a republican. also, john kerry, currently in the senate. michelle flournoy, who is in the defense department right now. and ashton carter, right now in the defense department right now. hagel would be an interesting pick. if he picks hagel, a republican, that takes some of the heat off of susan rice to be nominated as secretary of state. she's had a tough time on capitol hill talking to republicans. so, if you get a package deal, a republican and a democrat, that you're nominating from the president. what are republican senators going to do, but take both of them? we're hearing, if the president wants susan rice, he's going to nominate susan rice, one way or the another. >> using political capital at that. david, neither side seems to be moving on what they need to do to avoid a fiscal cliff and reach an agreement. republicans say no tax rate increases. democrats aren't giving in on entitlement reforms. is this just posturing? or are we in real trouble here? >> reporter: well, this is washington.